Estate planning for parents of minor children: Important considerations
When you become a parent, estate planning takes on new significance. As an Idaho estate planning attorney, I've seen how proper planning provides peace of mind for parents of minor children. Here are the key considerations every parent should address in their estate plan.
Guardian Designations for Minor Children
Perhaps the most crucial element of estate planning for parents is designating a guardian for your minor children. Without this formal designation in your will, Idaho courts will determine who raises your children if both parents pass away. This decision should reflect not only who would provide loving care, but also who shares your values and parenting philosophy.
Consider naming alternate guardians in case your first choice is unable to serve. Have detailed conversations with potential guardians before naming them to ensure they're willing and prepared for this responsibility.
Trusts Can Protect Your Children's Financial Future
Unlike adults, minor children cannot legally control their inheritance. Without proper planning, the court will appoint a conservator to manage assets until your child reaches 18, at which point they receive everything outright — potentially before they're ready for such responsibility.
A trust allows you to:
• Name a trustee to manage assets for your children's benefit
• Establish guidelines for how funds should be used
• Determine at what age(s) children receive control of their inheritance
• Create specific provisions for education, healthcare, or other priorities
For example, you might allow distributions for college expenses at 18, provide a partial distribution at 25, and full distribution at 30, giving your children time to develop financial maturity and life experience.
Powers of Attorney for Immediate Protection
While wills and trusts address what happens after your passing, power of attorney documents are crucial for situations where you are alive but have become unable to make decisions. Incapacity of this sort could be caused by an injury or disease, and could be temporary or permanent. For parents, planning for the possibility of incapacity is particularly important.
A healthcare power of attorney designates who can make medical decisions for you if you're incapacitated. A financial power of attorney names someone to handle your finances in similar circumstances. Without these documents, your family may face court proceedings to gain authority to manage your affairs—creating long delays and significant legal fees when immediate action may be needed.
Consider Special Needs Planning
If you have a child with special needs, additional planning is essential. Careful structuring of assets can provide for your child while preserving their eligibility for government benefits. A special needs trust is specifically designed to enhance your child's quality of life without displacing crucial benefits like Medicaid or Supplemental Security Income.
Review and Update Regularly
Estate planning isn't a one-time event, especially for parents. As your children grow and your family circumstances change, your estate plan should evolve accordingly. Major life events like the birth of additional children, divorce, remarriage, a death, moving to a new state, or significant changes in financial status should trigger a review of your plan. Even without such changes, I recommend looking over your plan yourself every couple of years to remind yourself of how things are set up and to be sure your plan is up to date with your wishes.
Take Action Today
While no parent wants to contemplate not being there for their children, creating a comprehensive estate plan is one of the most loving actions you can take. It ensures your children will be cared for according to your wishes and provides a roadmap for those who will step in to support your family.
Don't wait for the "perfect time" to begin this important process. As an Idaho parent, taking these steps today provides invaluable protection for your children's future.
My law firm is currently offering free telephonic, electronic, or in-person consultations concerning adult guardianships, probates, and creating or reviewing estate planning documents.
• • •
Robert J. Green is an Elder Law, Trust, Estate, & Guardianship Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, powers of attorney, guardianships, Medicaid planning, or VA Benefit planning, contact Kootenai Law at 208-765-6555, Info@KootenaiLaw.com, or visit www.KootenaiLaw.com.
This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.